Hi everyone:
Let's talk about capital partitioning, which is a risk management approach for consistent traders to utilize to allow them to leverage their capital.
You may ask what exactly is capital partitioning ? well to simply put it in words, it is basically divide up your trading $ in the current trading account into 2 or more sub accounts.
So what's the...
what happens if you have a 1:1.5 risk reward ratio(means if you win you won 1/5% of your balance if you lose you lost1% of your balance) and doing 2 trade via any strategy that you prefer in a day (means your open trades should not be more than 2 at the same time).
at the end of the month, you do 40 trades so we see below what happens(20 days * 2 trades = 40...
SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY
Money Management 101
Are you receiving a win-rate of more then 60% and still loosing money?? Money Management may be an area that you need to focus on. It is an essential element in becoming a professional trader. Listed below are 4 Simple Steps To Evaluate Your Financial Health;
1. Position Sizing
A portfolio of...
